Corporate Insolvency and Reconstruction (LAWS70240)

The law of corporate insolvency plays a significant role in a modern economy. Recent economic downturns, coupled with high-profile corporate collapses, have emphasised its importance. But several parliamentary and other enquiries have highlighted its shortcomings, and the effectiveness of recent law reform initiatives remains to be seen.

This subject is of particular relevance to practitioners whose work involves insolvency and related issues—whether from the ‘back end’ (eg litigators) or ‘front end’ (eg transactional, banking or property lawyers).

Students will be expected to have some background knowledge in the subject matter before enrolling. At the least, they should have or obtain (for instance, by previous study in corporations law or by pre-subject reading) a general familiarity with the formal regimes (i.e. liquidation, administration and receivership) and relevant statutory provisions as a backdrop against which to consider the topics and issues covered in the course.

Principal topics include:

• Foundations of insolvency law: history, philosophy, policies and principles
• The meaning of “insolvency”; winding up, the powers and functions of liquidators
• Distribution of assets: parri passu; the ranking of claims; priority creditors; the effect of security
• Avoidance of antecedent transactions; combatting “phoenix” activity
• Insolvency of corporate groups: directors’ duties; insolvent trading; pooling
• voluntary administration and deeds of company arrangement (DOCAs)
• Receivership: intersection with other insolvency regimes
• Restructuring and rescue: schemes of arrangement, DOCAs, and informal mechanisms.